Antecedents and performance outcomes of flexibility in industrial customer-supplier relationships

Abstract

This paper deals with the impact of suppliers' flexibility in the industrial markets and presents empirical results from the market research sector including outcome variables (market-uncertainty, relationship-specific investments, mutuality, opportunism, long-term orientation, planning, conflict management). We examined the antecedents of supplier flexibility. Buyers need to know whether supplier will modify existing agreements in cases where environmental factors change. Insufficient flexibility can lead to problems, such as having to accept services which no longer meet the buyer's needs. Accordingly, identifying indicators of supplier flexibility is an important objective for managers involved in the purchasing process of services. Empirical results suggest that supplier flexibility is an important determinant of buyer satisfaction, relationship quality, trust, and commitment. We also discussed the managerial implications and limitations of the results of the study.